Introduction
MiCA regulates crypto and MiFID II regulates derivatives — but as soon as euros move, European payment law applies. Exchanges that want to process SEPA payments themselves or hold EUR balances need a PSD2 or EMI licence. It is the least known licence, yet the most tangible one: it determines how fast and cheaply your euros move in and out.
What does PSD2 regulate?
PSD2 (Payment Services Directive 2) is the EU directive for payment services. Anyone executing payments for third parties — receiving, holding, transferring money — needs authorisation as a payment institution from a national supervisor (in the Netherlands: DNB). PSD2 imposes capital requirements, safeguarding of client money, strong customer authentication and incident reporting.
What is an EMI?
An e-money institution may additionally issue electronic money: a digital EUR balance you hold with the platform. Your EUR balance at an EMI-licensed exchange is legally e-money — with mandatory 1:1 backing, safeguarded at a bank or in safe assets, separated from company funds.
PSD2 vs EMI
| Payment institution (PSD2) | E-money institution (EMI) | |
|---|---|---|
| Process payments (SEPA in/out) | Yes | Yes |
| Issue and hold EUR balances | No | Yes |
| Safeguarding client money | Yes | Yes, incl. 1:1 e-money backing |
Why does an exchange need this?
MiCA covers crypto services, not moving fiat. An exchange without its own payment licence must outsource this to an external partner — an extra link, extra costs, and often slower or more limited EUR functionality.
With vs without an own licence: what you notice
Own PSD2/EMI: direct SEPA in/out (often free and fast), a real safeguarded EUR balance, EUR usable as collateral, one accountable party.
Via an external partner: deposits run through a third party (a different name on your bank statement), sometimes higher costs or limits, EUR often converted straight into stablecoins — with a spread — and two counters when things go wrong.
The three-licence stack
| Licence | Covers | See |
|---|---|---|
| MiCA | Spot crypto, custody | What is a MiCA licence? |
| MiFID II | Perpetuals, tokenised stocks | What is a MiFID II licence? |
| PSD2 / EMI | Payments, EUR balances | this page |
Fewer than five exchanges in the EU hold all three — each licence carries its own capital requirements and 6-12 month timelines.
Frequently asked questions
Is my EUR balance covered by deposit insurance?
No. E-money falls outside deposit guarantee schemes (those apply to banks). Safeguarding does apply: 1:1 backing, segregated from company assets.
How do I check whether my exchange holds its own payment licence?
Check the register of the relevant supervisor (e.g. DNB or FCMC) for the legal entity name.
Why does my SEPA deposit go to a different company name?
Then payments run through an external payment partner — the exchange has no licence of its own.